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4 comment(s). Last comment by ks55 2018-10-08 16:57
Posted by ks55 > 2018-10-08 16:54 | Report Abuse
As a turnkey contractor, no more easy meat as PDP.
It has to bear any cost overrun and cannot pass to govt.
See how much escalated when MRT2 first announced.
If MRT2 cost overrun by 10 billion, which is highly probable tic history of MRT1 and MRT2, effectively make Gamuda a potential bankrupt candidate......Only Public Anal-list fail to visualize it.
Posted by ks55 > 2018-10-08 16:55 | Report Abuse
You trust Public Anal-list, surely you will go to holland.
No result.
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CS Tan
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Victor Yong
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Posted by Victor Yong > 2018-10-08 12:02 | Report Abuse
:)
KVMRT2 contract revisions. We understand KVMRT’s current overall PDP and underground completion is now at 28% and 37% respectively. Finance Minister Lim Guan Eng was reported to say that all unfinished underground work will be re-tendered via an international open tender process as the Government felt it could achieve “further significant savings” compared to the offer made by MMC-Gamuda. We do not discount the possibility of Gamuda to bid again for the underground contract again and could have cost advantage as it already has the boring machines and project knowledge. That said, costs could be escalated with the surprise contract cancellation due to idling resources on site but we believe Gamuda should be getting compensations. As for above ground packages, works to be continued with savings achieved through a reduction in cost and rationalisation in work scope without cancelling any of the above-ground stations. We believe that project margins should be largely unchanged from PDP model to fixed price turnkey model.
Source: PublicInvest Research - 8 Oct 2018